In a remarkable show of confidence in Calgary’s new home market, one of Canada’s largest residential developers has purchased 130 acres of land for a massive new home build.
Genesis Land Development Corp. reported it acquired 130 acres in north Calgary for $23.7 million.
The transaction will close on September 25, 2019, subject to closing conditions customary for a transaction of this nature, Genesis stated in a release.
“The North Calgary area is experiencing solid growth and Genesis believes the land acquisition fits well with its existing land base in terms of location and time to market,” the statement noted. Genesis intends to develop the land into a residential community, with servicing slated to begin in 2020.
Upon completion, the community is expected to include more than 800 single family homes, and approximately seven acres of multi-family and commercial sites.
Iain Stewart, president and CEO of Genesis stated, “These lands provide Genesis with an attractive, short term residential development opportunity that leverages our expertise and strong balance sheet by reinvesting capital in Calgary real estate at an opportune time.”
The Calgary housing market is improving. August sales marked the fifth consecutive month in which inventories declined and sales improved, according to the Calgary Real Estate Board (CREB).
“We are starting to see reductions in supply across the resale, rental and new-home markets,” said CREB chief economist Ann-Marie Lurie. “If this continues, the housing market should be better positioned for recovery as we move into 2020.”